AUSTIN TECHNOLOGY SOLUTIONS LIMITED

Executive Summary

Austin Technology Solutions Limited is a small, micro-entity IT consultancy with steady but limited financial growth and modest net assets. It currently demonstrates adequate liquidity and positive net working capital, supporting a cautious credit approval. Ongoing monitoring of liquidity and operational cash flow is recommended to ensure sustained repayment ability as the business scales.

AUSTIN TECHNOLOGY SOLUTIONS LIMITED - Analysis Report

Company Number: 13642874

Analysis Date: 2025-07-20 12:14 UTC

1. Credit Opinion: APPROVE with caution
   Austin Technology Solutions Limited shows consistent modest growth in net assets and working capital over the past three years. The company maintains positive net current assets and a positive equity base, indicating basic financial stability. However, the company operates at a micro scale with minimal fixed assets and relatively low equity, which limits its margin for error. The directors, both IT professionals and majority shareholders, appear to manage the business prudently. Given the company’s young age (incorporated 2021) and small scale, credit approval is recommended with a cautious limit aligned to its size and cash flow profile.

2. Financial Strength:
   The balance sheet reflects a stable but very modest financial position. Net assets have increased from £85 in 2023 to £438 in 2024, showing gradual capitalization. Fixed assets are minimal (£393 in 2024), suggesting limited investment in long-term resources. Current assets exceed current liabilities by £1,179, indicating positive working capital but a narrow buffer relative to liabilities due within one year. Accruals and deferred income reduce net assets slightly but are consistent with prior periods. Overall, the company’s financial strength is weak but improving within a micro-entity context.

3. Cash Flow Assessment:
   The company holds approximately £28k in current assets against £26.8k current liabilities as of September 2024, yielding a current ratio just above 1. This indicates adequate short-term liquidity to cover immediate obligations. The net current assets have more than doubled since 2023, improving liquidity. The small working capital surplus suggests the business can manage day-to-day operations but has limited flexibility for unexpected expenses or downturns. With only two employees and low fixed costs implied, cash flow risk appears moderate. Continuous monitoring of receivables and payables cycles is advised.

4. Monitoring Points:

• Maintain and improve net current assets to build liquidity buffer.
• Monitor timely accounts and confirmation statement filings to avoid compliance risk.
• Track any changes in directors or shareholders that could impact control or management quality.
• Review cash flow statements when available for evidence of consistent positive operating cash flow.
• Watch for any significant increase in liabilities or drop in working capital that could impair repayment capability.